Trade-Ideas LLC identified

Shutterfly

(

SFLY

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Shutterfly as such a stock due to the following factors:

  • SFLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • SFLY has traded 86,282 shares today.
  • SFLY is trading at 10.46 times the normal volume for the stock at this time of day.
  • SFLY is trading at a new high 9.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SFLY:

Shutterfly, Inc. engages in manufacturing and retailing personalized products and services in the United States. The company operates through Consumer and Enterprise segments. SFLY has a PE ratio of 156. Currently there are 5 analysts that rate Shutterfly a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Shutterfly has been 237,100 shares per day over the past 30 days. Shutterfly has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.93 and a short float of 6.7% with 8.18 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shutterfly as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • SHUTTERFLY INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SHUTTERFLY INC turned its bottom line around by earning $0.02 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.02).
  • 47.62% is the gross profit margin for SHUTTERFLY INC which we consider to be strong. Regardless of SFLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SFLY's net profit margin of -16.19% significantly underperformed when compared to the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Internet & Catalog Retail industry and the overall market, SHUTTERFLY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 34.7% when compared to the same quarter one year prior, rising from -$45.10 million to -$29.44 million.

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